Transcript | Brookf ield Corporation 2025 Investor Day September 10, 2025
Brookf ield Corporation Speakers:
Opening Remarks
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Katie Battaglia, Vice President, Investor Relations
Our Evolution Continues
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Bruce Flatt, Chief Executive Officer
The Numbers Are Strong
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Nick Goodman, President
Real Estate is in Recovery
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Kevin McCrain, Managing Partner, Real Estate
Wealth Solutions Is Our Future
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Sachin Shah, Chief Executive Officer, Wealth Solutions
Key Messages
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Bruce Flatt, Chief Executive Officer
OPENING REMARKS
Katie Battaglia, Vice President, Investor Relations
Good afternoon, everyone, and welcome to Brookfield Corporation's 2025 investor day. Thank you for joining us today, whether you're here in-person, participating virtually, as well as those who attended Brookfield Asset Management's presentation earlier today. We greatly appreciate your continued interest in Brookfield.
We have an exciting lineup for you this afternoon. We'll begin with opening remarks from our CEO, Bruce Flatt. Then, our president Nick Goodman, will provide an overview and the financial outlook for the Corporation. Next, we'll have a presentation from Kevin McCrain, Managing Partner in our Real Estate Group. We will then hear from Sachin Shah, CEO of Brookfield Wealth Solutions. And finally, we'll wrap up with a few closing remarks before opening the floor to a Q&A session.
When we get to the Q&A, if you're here in the room, microphones will be available. We ask that you please wait until a mic reaches you before asking your question, so everyone can hear it clearly. For those of you joining virtually, you can submit your questions directly through the text box on your screen.
Following the Q&A, we will display a QR code. We kindly ask you to take a moment, scan the screen, and complete a brief survey. Your feedback is important, and helps us improve future events.
As always, I'd like to remind you that during the Q&A and throughout today's discussions, we may make forward-looking statements. These statements are predictions about future events and trends, and are subject to risk and uncertainties. Actual results may differ materially from those that we discuss today. For further details, please refer to our filings with the securities regulators in Canada and the U.S., and the cautionary statements contained within our presentation, which are all available on our brand-new website.
In addition, when we speak about our wealth solutions business, or Brookfield Wealth Solutions, we are referring to Brookfield's investment in this business that supported the acquisition of its underlying operating subsidiaries. And with that, please join me in welcoming our CEO, Bruce Flatt to the stage.
OUR EVOLUTION CONTINUES
Bruce Flatt, Chief Executive Off icer
Good afternoon, everyone. Thanks for staying. I have a little bit of time to tell you about what we're doing with the business and giving you an overview. And as you know, we strive to be the leading global investment firm and continue to do that. I guess our number one goal is build long-term wealth for investors, clients, individuals, pension funds, sovereign funds around the world. And for 125 years, but some of us that are here for the last 30, 40 years, we've been building one of the largest discretionary pools of capital globally, which today on our balance sheet is around $180 billion in capital, there's $135 billion now in the insurance business, and just over a trillion dollars in the asset management business. And I'll talk about that a little bit later.
Today the business is in 50 countries. Maybe the most importantly, it's built to be extremely nimble, and it sounds like at the scale that we operate at, you can't be nimble, but we try to always be very nimble to change and evolve our strategy over time.
But one thing we're not nimble with is our discipline on how we invest your money. That has led to 19% annualized returns for 30+ years, which always doesn't sound like that much, but that's a 27,000% return over 30 years. So, that's a pretty amazing return.
What that means is that if you look at these returns, the S&P 500 did 11%, we did 19%. That's 800 basis points more every single year for 30 years. It wasn't every single year, but on average, it was every single year.
What's more interesting, most investment strategies get worse as you get bigger. Our 20-year returns are 16%, our 10-year returns are 17%, our five-year returns are 22%. What it means is the business is maturing and getting better over time, and scale actually is assisting us getting better returns.
We've achieved that by evolving the business and innovating within the strategies, which I'll touch on. But the evolution, most importantly, is based on two things. One, we always adhere to the value investing tenets that we have within the company. And number two, we try to drive returns, as Anuj said earlier at the BAM presentation, out of our operating capabilities.
Over time, our evolution has been, I would say, continuing, but punctuated by some strategic things that we do every once in a while, which we spun our listed entities out in 2008, we started our wealth business in 2020, we spun off BAM in 2023, to mention three recent things, which I think were extremely important for the business in the short-term, will be very strategic in the long-term.
Most importantly, as I've said to many of you, I said it earlier, and I'll keep saying it, our view is that having access to capital wins. We've always tried to have the best access to capital. That started with institutional investors, is leading to private wealth, has always been with banking relationships, has public market access, and increasingly, the public float that we build within the business will be extremely important to us.
Innovation, on the other hand, drives long-term returns for our investors, and there's really just three things to make it simple that we do. We try to identify the trends on a big, global basis that are going to
affect the world, that we can participate in. We take those, package them into products for our clients, which then enables us to attract scale capital within each sector.
Once we understand an industry, we move fast, and we deploy at scale. We're not early, but once we understand it, we move fast, and we deploy at scale. 50% of the assets that we operate with today didn't exist as an asset class for investible purposes 15 years ago. That's an evolution.
Our leadership position allows us to build differentiated products, and as you can see here, they're in all of our different businesses, and we keep expanding out tangentially within each of the businesses we have to either get other strategies, or to get other return profiles for investors that they're looking for.
But despite widening out and doing other things, our investment approach has remained consistent, and has, essentially, been a methodical and proven capital allocation process.
We operate with a value investing thesis taking moderate risk, aligning ourselves with our constituents, using our operating skills to squeeze extra returns out of it, and probably most importantly, the culture we have in the organization is extremely important.
This has driven 25 years of growth. AUM to a trillion dollars, operating income to $19 billion, share price from $2 to $66.
So, you did that for me last year. What about this year? So, where are we now?
We're in the midst of three things going on with our business, which are going to foundationally change what we do in the business in a positive way.
AI is going to drive enormous things within owners of businesses, if you get it right, and we believe we can get it right. Second, aging populations are demanding wealth products, and are increasingly going to need those products to service their 401(k)s and other retirement systems. And, third, on a more micro level, the real estate recovery is here, and it's coming back. And I'll cover each of those.
On AI, you've seen our slides. This is a $7 trillion opportunity. We're ideally suited, because of our power, our adjacencies, our compute infrastructure, our real estate businesses to participate in this. We have a number of AI factories that we're working on, which is around a $200 billion investment project over
the next while, and this is just the beginning, and it's really just the start of what's going on in the world on the infrastructure side. This is a multi-decade opportunity that possibly is the largest business within our company within 10 years. Second, the retirement landscape is undergoing a fundamental shift. Aging populations need savings. DC plans in the U.S. are opening up. Once they open up in the U.S., they're going to open up globally. And there's a structural need for wealth solutions.
The shift is very powerful. In the past, our money came from our balance sheet, it came from our asset management business. Increasingly, it's going to come from individuals and people seeking wealth.
Pension plans and sovereign plans, who we've generally sought capital for, is a $22 trillion market. 401ks and wealth is $40 trillion.
We expect this third source of capital to support a doubling of the inflows into our business across all the different channels, which I would say is $100 billion from institutional funding annually, $50 billion from annuities, $50 billion from wealth. That's about double of what we've done generally in the past.
And in real estate, the third change, operating fundamentals are strong. Capital markets are back, or coming back. Interest rates are going to start declining, or have declined around the world. Deal activity is coming back significantly.
Where others pulled back, maybe this is most important, we remained active. It's allowed us to continue to grow the business over the last five years into many other sectors, and many other places. Simply put, our real estate franchise is more dominant now than it's ever been. There are very few survivors like us in the business. Our franchise in real estate is stronger than ever.
The next phase of our evolution is also here. Thinking back, our history has been about understanding change, and positioning ourselves to respond to that change. We're building our insurance unit to be a fully integrated investment-led insurance organization. Our corporation of wealth solutions, and our asset management business, and they're all working together.
We've been asked by many, "What does investment-led insurance organization mean?" And I'll touch on what we mean when we say that, because I think this is extremely important for you to understand.
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Disclaimer
Brookfield Corporation published this content on September 26, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on September 26, 2025 at 18:49 UTC.
